Trade War Saga: Ford Stops Deliveries To China

Ford Motor Co. said it has halted deliveries of its SUVs, pickup trucks, and sports cars to China as it begins to face heat from retaliatory tariffs that have seen vehicles face taxes as high as 150%.

“We have adjusted our U.S. exports to China in light of the current tariffs,” Ford said in a statement.

This week, the company halted deliveries of its Michigan-built F-150 Raptor, Mustang, and Bronco SUVs and Kentucky-built Lincoln Navigators to China.

The move comes as U.S. automakers struggle to find ways to deal with President Donald Trump’s tariffs, which are also expected to cut into the profits of automakers and parts suppliers. Ford’s exports of U.S.-made engines and transmissions to China are expected to continue despite the pause in exports of assembled vehicles.

Deliveries of its Lincoln Nautilus model, which is manufactured in China, are also expected to continue, despite high tariffs. Ford is among the best-positioned automakers in forecasting, as it produces about 80% of its vehicles sold in the US domestically.

Still, the automaker is expected to raise prices on its new vehicles if the tariffs continue, according to an internal memo sent to dealers seen by Reuters. An analysis by the Centre for Automotive Research released earlier this month says Trump’s 25% tariffs on car imports will escalate costs for automakers by about $108 billion in 2025.

Trump floated the idea earlier this week that he was considering changing auto-related tariffs, hinting that he could allow exemptions from existing levies.

• Also See: Ford Mustang Sales Continues To Drop Drastically